revenue

Remaking a Neglected Megacity: A Civic Transformation in Lagos State, 1999-2012

Author
Gabriel Kuris
Focus Area(s)
Country of Reform
Abstract

Lagos State began the twenty-first century as a boomtown crippled by crime, traffic, blight, and corruption. A regional economic hub and burgeoning state of 13.4 million people, the megalopolis had a global reputation for government dysfunction. Two successively elected governors, Bola Tinubu and Babatunde Fashola, worked in tandem to set the state on a new course. Beginning in 1999, their administrations overhauled city governance, raised new revenues, improved security and sanitation, reduced traffic, expanded infrastructure and transit, and attracted global investment. By following through on their promises to constituents and forging a new civic contract between Lagos and its taxpayers, Tinubu and Fashola laid the foundations of a functional, livable, and sustainable metropolis.
 
Gabriel Kuris drafted this case study based on interviews conducted by Graeme Blair in Lagos, Nigeria, in August 2009 and by Kuris in Lagos, in October 2011 and in Providence, Rhode Island, in November 2012. Case published July 2014.

Associated Interview(s):  Babatunde Fashola, Bola Tinubu

Municipal Turnaround in Cape Town, South Africa, 2006-2009

Author
Michael Woldemariam
Country of Reform
Abstract
In March 2006, the Democratic Alliance won elections in the city of Cape Town, taking over administrative and political control of the municipality following four years of rule by the African National Congress, South Africa’s dominant party. Helen Zille, Cape Town’s new mayor, stepped into a difficult situation. Crumbling infrastructure had eroded service delivery for years, undermining public confidence in the city government and jeopardizing the long-term economic prospects of the Cape Town metropolitan area.   Lacking the revenue and administrative capacity to address Cape Town’s infrastructure crisis, and facing a politically charged racial climate, Zille and her Democratic Alliance government initiated a package of innovative and far-reaching reforms. This case study recounts these efforts from 2006 to 2009, and describes how tough decisions to raise local revenue interacted with a program to stabilize an underskilled and demoralized city bureaucracy, reversing Cape Town’s precipitous decline.
 

Michael Woldemariam compiled this policy note on the basis of interviews conducted in Cape Town, South Africa, in March 2011. Ayenat Mersie, Sam Scott and Jennifer Widner provided assistance.  Case published July 2011.

Associated Interviews:  David Beretti

Professionalization, Decentralization and a One-Stop Shop: Tax-Collection Reform in Ghana, 1986-2008

Author
David Hausman
Focus Area(s)
Country of Reform
Abstract
Between 1986 and 2008, direct tax revenue collected by Ghana’s Internal Revenue Service nearly doubled as a proportion of the country’s gross domestic product. This case study offers an account of organizational change within the IRS during that period. When the agency became autonomous from the rest of the Ghanaian civil service in 1986, its leaders recruited a large number of accountants and lawyers, raised salaries by 50%-100% and instituted a collective bonus system tied to annual revenue targets. In order to make taxes easier to pay, they delegated functions, people and equipment to local branch offices, monitoring those offices through monthly revenue reports and regular internal audits. Finally, the agency focused attention on customer service for the largest taxpayers by founding a Large Taxpayers Office. That office formed the basis for a cross-agency one-stop shop, the Large Taxpayers Unit, which allowed the 360 firms and individuals that accounted for 50%-60% of the country’s revenue to pay customs taxes, value-added taxes and income taxes in one place.
 
David Hausman wrote this case study on the basis of interviews conducted in Accra, Ghana, in January 2010.  Case published July 2011.
 

Reworking the Revenue Service: Tax Collection in South Africa, 1999-2009

Author
David Hausman
Focus Area(s)
Country of Reform
Abstract

Between 1998 and 2009, the South African Revenue Service dramatically improved tax compliance.  The number of income-tax payers increased to 4.1 million from 2.6 million during the period.  Several internal organizational changes helped the revenue service persuade more South Africans to pay their taxes.  This case study tells the story of two of those changes in particular: the recruitment of a new cadre of managers from both within and outside the organization and a campaign to provide taxpayers with better service to encourage compliance.  The organization used diagnostic tests as well as informal recruiting to rebuild the ranks of upper and middle management, transforming the racial make-up of the organization while improving performance.  Meanwhile, in order to improve service for taxpayers, a team of managers and consultants separated back and front offices and introduced an annual "filing season" in which employees of the revenue service left their offices to help taxpayers file their returns.  In each of these changes, Pravin Gordhan, revenue-service commissioner from 1999 to 2009, played a central role, both determining policy and overseeing the details of implementation.

David Hausman drafted this case study based on interviews conducted in Pretoria, South Africa in February 2010. Case originally published 2010. Additional text added in December 2013. 

Associated Interview(s):  Pravin Gordhan, Judy Parfitt